Confidence in the UK housing market has slumped amid Brexit uncertainty, according to Paragon’s latest Financial Adviser and Confidence Tracking (FACT) Index, a regular survey of over 200 UK mortgage intermediaries.
Mortgage advisers predict that property price growth will remain subdued, while they expect buyer demand to remain virtually unchanged in the first quarter of 2019, as political and economic uncertainty adversely affects the market.
Reflecting on the second half of 2018, more than half - 57% - of mortgage advisers felt that Brexit had a negative impact on demand for properties, 56% said it had placed downward pressure on property prices and 44% reported a dampening effect on the availability of property.
In contrast, just 5% highlighted a positive impact against any of these factors.
John Heron, managing director of mortgages at Paragon, commented: “Brexit uncertainty is causing a measurable slowdown across the UK housing market as potential buyers and sellers adopt a ‘wait and see’ approach.
“As political negotiations move into the final phase, hopes are high for a workable solution and a much-anticipated Brexit bounce.”